Sunday, December 7, 2008

Cheap Auto Insurance and Saving Money in a Recession

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Cheap Auto Insurance and Saving Money in a Recession

Is your car insurance going to get more expensive because of the recession? Should you be looking for cheaper auto insurance? Are there ways you can save money? Here are some points to consider.

The recession has everybody thinking about saving money and that includes auto insurance companies. As they lose money on their investments, they may pass those losses on to consumers in the form of a rate increase. What's more, auto insurance fraud tends to increase during a bad economy. This is another financial loss that the industry often passes on to consumers.

Have you seen your rates increase? If so, you should do some comparison quote shopping to find cheaper auto insurance. Rates vary from company to company and that means you could find a lower rate. You'll want to get at least three quotes from different companies. An easy way to do this is to get online auto insurance quotes through a comparison site.

Also, just because it's a recession doesn't mean you should cut your insurance coverages. Now, more than ever, you'll want the peace of mind of financial protection. If you lower your limits of liability to save some money on your premium, you'll open yourself up to a greater financial risk.

However, there are some things you can do to lower your insurance costs.

1. Consider a higher deductible. A higher deductible can lower your premium quite a bit. Of course, you want to be comfortable with the deductible amount in case you need to come up with the money.

2. Drive less and take advantage of public transportation or car pooling. Most auto insurance companies will provide some sort of mileage discount if you drive fewer miles per year. This also provides less wear-and-tear on your vehicle and reduces your chances of getting in a costly collision.

3. Take advantage of discounts. You may qualify for several discounts that could lower your premium. Check with your current insurer and with companies who provide you quotes.

4. Do business with reputable companies. Check the financial ratings of the insurance companies that interest you. A low quote is the start, but you want to be sure they'll be around if you need them. Check online with A.M Best, Weiss and Standard & Poor's to see how they rate the company. You can also check with your state's department of insurance to see if there have been any complaints.

Find Get cheap car insurance quotes online

About The Author:
Justin Scott is a free-lance insurance writer. He recommends the comparison site LowerYourInsurance.com for up to 5 free auto insurance quotes, plus more information about saving on car insurance. The site also includes a car insurance comparison worksheet.

Article Source: http://EzineArticles.com/?expert=Justin_Scott




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